Currently Not Collectible
- Immediate Relief from IRS Collection Actions
- Prevent Financial Hardship
- No Need for Payments While in CNC
- Tax Debt Protection with Regular Review
Struggling with IRS Collections? We Can Help You Qualify for Currently Not Collectible Status!
Understanding "Currently Not Collectible" (CNC) Status for Taxpayers
“Currently Not Collectible” (CNC) status is an important concept in the field of IRS tax resolution, which can provide significant relief to taxpayers facing financial difficulties. Here’s how you might explain it to a prospective client.
- Definition of CNC Status
CNC status, or Status 53, is an IRS designation indicating that a taxpayer cannot currently afford to pay their tax debt.
- Qualifying for CNC Status:
To qualify for CNC status, a taxpayer must prove that paying their tax debt would cause financial hardship, making it hard to cover basic living expenses. This requires submitting financial details to the IRS.
- Application Process:
The process generally involves submitting a Collection Information Statement (Form 433-A or Form 433-F) to the IRS. This form details your income, expenses, assets, and liabilities. The IRS reviews this information to determine if you can realistically pay your tax debt.
- Effects of CNC Status:
The IRS stops all collection activities while your account is in CNC status. This includes halting levies and garnishments. However, it’s important to note that the tax debt is not forgiven or erased; interest and penalties continue to accrue.
- Periodic Review:
The IRS periodically reviews the financial situation of taxpayers in CNC status. The IRS may remove the CNC status and resume collection activities if your financial condition improves.
- Tax Liens and CNC Status:
The IRS may still file a tax lien against you even while your account is in CNC status. This is a public record indicating the government’s legal claim against your property for the tax debt.
- Long-Term Implications:
If your financial situation does not improve, your tax debt may remain in CNC status until the statute of limitations on the debt expires. This is typically 10 years from the date the tax was assessed.
Stop IRS Collections Today with CNC Status
Qualify for "Currently Not Collectible" status and safeguard your financial future. Let our experts guide you through the process.
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